FSN E–Commerce Ventures, which owns Nykaa
and Nykaa Fashion, will begin accepting subscriptions for its initial public
offering (IPO) later this week. Falguni Nayar promotes FSN, which is funded by
private equity company TPG.
Before you subscribe to the IPO, below are
certain things you should keep in mind.
The bidding for the third-largest initial
public offering (after Zomato and Sona Comstar) in 2021 will begin on October
28 and end on November 1, 2021. If there is an anchor book, it will open
for a day on October 27.
about the IPO
The IPO consists of a Rs 630 crore new
issuance and a 4.19 crore equity share offer for sale (OFS) by many
shareholders, including the promoters and certain investors.
TPG Growth IV SF Pte Ltd and Lighthouse
India Fund III respectively would sell 54.21 lakh and 48.44 lakh equity shares
through OFS, while promoter Sanjay Nayar Family Trust will sell up to 48 lakh
Yogesh Agencies & Investments Pvt Ltd
and JM Financial and Investment Consultancy Services, among others, would sell
25.38 lakh equity shares and 9.14 lakh equity shares, respectively.
Other shareholders, including Lighthouse
India III Employee Trust and many more will sell 2.34 crore equity shares.
Employees would get 2.5 lakh equity shares
out of the entire offering size.
The price range has been set by the
business in conjunction with merchant bankers at Rs 1,085-1,125 per equity
FSN E-Commerce intends to collect Rs 5,351.92
crore from the upper band and Rs 5,184.03 crore from the lower band.
For the initial stage, the business plans
to use the net funds from the new offering to invest in two subsidiaries - FSN
Brands and/or Nykaa Fashion - as well as open additional retail locations (Rs
42 crore). The funds will also be used to fund capital expenditures and
investments in companies such as Nykaa E-Retail, Nykaa Fashion, and FSN Brands,
as well as warehouse construction (Rs 42 crore).
The cash will also be used to settle the
company's and its subsidiary Nykaa E-debt Retail's (Rs 156 crore), as well as
to boost brand recognition and visibility (Rs 234 crore).
The proceeds through the OFS route will be
distributed to the selling shareholders.
Nykaa is a consumer technology platform
that provides consumers with a content-driven, lifestyle shopping experience.
It was founded in 2012. The firm features a varied portfolio of beauty,
personal care, and fashion items, as well as products under their own brand
that they produce. There are two key verticals in which the firm operates:
Nykaa: Personal care and beauty
Nykaa Fashion specialises on clothing and
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